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Complementary good - Wikipedia, the free encyclopedia
A complementary good or complement good in economics is a good which is consumed with another good; its cross elasticity of demand is negative. – It is two goods that are bought and used together....
en.wikipedia.org/wiki/Complementary_good |
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complementary angle ... Search for "compleme... goods" in all of MSN Encarta ... goods used together: two goods that are typically used at the same time, e.g. cars and gasoline, so that a change in demand for one has a direct effect on the other;
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We establish an equivalence between a model of a base and a complementary good and a reduced-form model of the base good in which network effects are assumed in the consumers’ utility functions as a surrogate for the presence of direct or indirect network effects, such as complementary goods produced by other firms.
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The fact that Google uses complementary goods to help make its core business bigger is a key insight that too few people have expressed clearly, so it's great to see Carr call that out. However, where he goes off track is in suggesting that this is somehow a unique situation and there isn't much to learn from it.
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Complementary goods are a natural for building bigger markets, but no one expects one side to pay the other just for moral reasons. The oil industry's success is built on the backs of the automobile industry, but does the automobile industry demand that oil companies have a moral obligation to pay them?
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Gabszjg3Uj J., N. Sonnac & X.Y.Wauthy (2000). Price Competition with Complementary Goods. EcoI Letters, forthcoming. ... Gabszjg3Uj J., N. Sonnac & X.Y.Wauthy (2000). Price Competition with Complementary Goods. EcoI Letters, forthcoming. Online articles have much greater impact More about CiteSeer.IST Add search form...
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Krishna, A., Kopalle, P. K., & Assuncao, J. L. Bundling of complementary goods: The impact of competition, brand preference, and price sensititivy, in preparation. ... Krishna, A., Kopalle, P. K., & Assuncao, J. L. Bundling of complementary goods: The impact of competition, brand preference, and price sensititivy,
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